Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 308 units during December, a decrease in sales of 10.5 percent from the same month in 2015. Total 2015 sales through December decreased 2.5 percent from the same period of 2015. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during December were 17 units or 5 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through December projected 4,319 closed transactions, while the actual sales were 4,229 units, a negative difference of 2 percent.
Supply: The Montgomery area housing inventory in December was 2,093 units, a decrease of 14 percent from December 2015, and 37 percent below the month-of-December peak in 2007 (3,294 units).
There were 6.8 months of housing supply during December, a decrease of 4 percent from the same time in 2015. About 6 months of supply is considered a balanced market during December, with buyer and seller having equal bargaining power.
December inventory in the Montgomery area decreased 8 percent from the prior month. This direction is consistent with historical data indicating December inventory on average (2011-2015) decreases from November by 0.4 percent.
Demand: December residential sales increased 1.7 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that December sales, on average (2010-2014), increase from November by 17 percent.
Existing single-family home sales accounted for 85 percent of total sales, while new construction sales made up 14 percent.
Pricing: The Montgomery-area median sales price in December was $147,750, up 6 percent from December 2015 ($140,000). The median sales price increased 6 percent from the prior month. Historical data (2011-2015) indicate the December median sales price typically increases from November by 8.1 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: “The tenor of our forecast effectively remains unchanged: signs of cautious consumers this quarter, rising interest rates, the renewed increase in the U.S. dollar to a 14-year high, and heightened uncertainty in the political sphere suggest conservatism in our outlook,” said Fannie Mae Chief Economist Doug Duncan. “While we are encouraged that confidence is rising across investors, consumers, businesses, economists and homebuilders, much of it appears to be in anticipation that the forthcoming Administration and the new Congress will enact fiscal policies and deregulation that will help spur growth. While we believe that some pro-growth policies could be adopted next year, it would take time for them to benefit the economy, barring any offsetting initiatives such as more restrictive trade policies.”
Click here to generate more graphs from the Montgomery December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.